In Khimmat v. Weltman, Weinberg & Reis Co. LPA, the Eastern District of Pennsylvania recently held that the transmission of information to a vendor who completes a mailing is deemed a “communication” to a “person” in connection with the “collection of a debt” under section 1692c(b) of the FDCPA.
​
The law firm in this case, considered a debt collector in this circuit, used a third-party vendor to mail correspondence to the Borrower, which included the Borrower’s name, address, and information about the nature of the debt. The Court rejected an argument from the law firm that the mail vendor is an “agent” of the law firm, noting that the FDCPA does not explicitly carve out an exception for agents of debt collectors.

Not all circuits follow this logic in considering whether debt collectors can rely on letter vendors, so it is important to consult with legal counsel in the appropriate jurisdiction to determine whether use of these types of vendors is permissible under the FDCPA. Click here to read the full decision. 

Questions? Contact us.
Contact us regarding this decision or other servicing issues in Pennsylvania. PLG's Managing Attorney of Foreclosure Operations, Jacqueline F. McNally, Esq., is licensed in Pennsylvania, New Jersey, New York, Georgia, and the District of Columbia. Click the button below to connect with Jackie. 

Remote Online Notarization (“RON”) continues to grow in popularity across the country as the industry continues to navigate through the pandemic.  The American Land Title Association (“ALTA”) conducted a survey of consumers who have used some version of RON as part of a real estate transaction.  An overwhelming number of the consumers polled felt the RON process was safe and secure.  ALTA published the results from a Virginia based title company showing that 95% of the surveyed consumers would recommend RON to other consumers.*  Not surprisingly, the use of RON is on the rise and more and more states are enacting statutes allowing for some version of RON.  As of July, ALTA noted that 37 states currently have a statute related to RON.  We predict this number will increase in 2022 with the next cycle of legislative sessions convening. 

“The Delaware County Common Pleas Court General Division is now piloting a mediation program for civil cases. Any civil case may be referred to mediation based on a party’s motion and the approval of the court.  The assigned judge may also refer any civil case for mediation.  Parties may suggest a mediator from the approved mediator list, but the court will make the final selection and appointment of the mediator.  The court will pay the approved mediator for the actual time spent in the matter, up to 8 hours of mediation time.  In the event the mediator or the parties would like to request that the court pay for additional mediation time, they may file a motion with the court prior to incurring those expenses.  This program does not prevent parties from utilizing a private mediator at their own expense. In order for the mediation cost to be covered under this pilot program, the parties must file a motion, receive approval from the court, and utilize a mediator from the court-approved mediator list.” 

PANDIFFERENT, the Padgett Web Summit, was recognized today as part of the 2021 Apex Communications Awards. PANDIFFERENT won an Award of Excellence for COVID-19 Media in the Education & Training Category. The Apex Awards is an annual competition held by Communications Concepts, which has been conducting the Awards for 33 years. 

PANDIFFERENT, launched in October 2020, is an online education event for clients and employees of Padgett Law Group (PLG). The format, unique to virtual summits in the industry, includes ten pre-recorded sessions featuring a mix of PLG leaders, clients, and industry guests, followed by a closing super session with select panelists from the day’s recordings rejoining for a live closing. Over 500 mortgage servicing professionals registered for and participated in PANDIFFERENT 2020. Topics covered major foreclosure, bankruptcy, and litigation trends and other topics important to PLG, including diversity, inclusion, and equity. Leaders from across the industry joined various panels, including senior executives from U.S. Bank, Community Loan Servicing, a360inc, Five Star Global, American Legal & Financial Network, and more.  

“2020 required us to do everything differently and that included reimagining how we trained our staff clients, which traditionally was onsite and in small groups. The PANDIFFERENT concept allowed us to reach a much larger audience, cover more timely topics, and deliver an innovative product to PLG clients that no other firm in our industry can offer,” said Chief Development Officer Robyn Padgett.  

PANDIFFERENT: The Padgett Web Summit returns October 1, 2021 and registration opens Thursday, July 15 at PadgettLawGroup.com. Registration is complimentary for employees of lenders, mortgage servicers, credit unions, banks, hedge funds, investors, other financial institutions, government agencies, and local, state, and federal housing authorities. All others may request an invitation by contacting marketing@padgettlawgroup.com. ​

Brian Montgomery, Chairman & Founder, Gate House Strategies. Montgomery most recently served as Deputy Secretary, Housing & Urban Development (HUD) and has twice served as FHA Commissioner under two Administrations.

Dror Oppenheimer, Founding Partner, Gate House Strategies. Oppenheimer spent over two decades with Fannie Mae and previously served as a Senior FHA Advisor.

Eric Kaplan, Senior Advisor, Milken Institute. Kaplan is currently the Chair of the CFPB’s Consumer Advisory Board.

Faith Schwartz, Founder & CEO, Housing Finance Strategies. Schwartz serves on the Board of Directors for Redwood Trust and Gateway First Bank; she is also the founder of the HOPENOW alliance.

Candace Russell, Vice President, Post-Sale, Carrington Mortgage Services. Russell is a former Chair of the MBA’s Loan Administration Committee.

​Moderating is Marissa Yaker, Esq., Managing Attorney, Padgett Law Group. Yaker Chairs the Legal League 100’s Special Initiatives Working Group and in 2020 received the DS News Top 25 Women of Law distinction, ALFN: JPEG Young Professionals Award, and the Five Star Women in Housing Rising Business Leader Award.  

“With the issues to be discussed, the backgrounds of the panelists, and the timeliness of the topic, this webinar is truly something you can’t afford to miss. We encourage all of our clients and partners to participate and join us on July 22,” said Chief Development Officer Robyn Padgett.  
​
PLG has opened registration for this one-time event to members of the industry including mortgage servicers, investors, financial institutions, vendors, and other industry stakeholders including members of the American Legal & Financial Network (ALFN) and Legal League 100 (LL100). Seats are limited to 1,000 and registration is offered on a first-come, first-served basis. The complimentary registration link can be accessed via the link below. Inquiries, press pass requests, or advance questions can be sent to marketing@padgettlawgroup.com. PLG reserves the right to refuse, cancel, or prioritize registrations at its sole discretion.  ​